How to sell your home QUICKLY for CASH!
I work with many investors who have the cash on hand to buy your home now and close very quickly, but in order to make a deal work, you need to know how the investors think. If you are interested in selling your home quickly and for cash after reading this article, set up your seller strategy session now.
TOP 5 TIPS TO SELL YOUR HOME QUICKLY AND FOR CASH
- You must be willing to accept a discount
Investors are looking for deals, and every real estate investor I know is looking to acquire properties at a steep discount in exchange for an easy transaction that alleviates the majority of the risk from the seller. How much of a discount, you ask? Well depending on the situation, you’re likely looking at selling for between 60-85% of the home’s current market value. An investor looking to buy in cash and close quickly is also looking for a quick return – so they’re only going to buy properties that will be profitable for them on the other side of the deal, whether they are buying and holding the property or rehabbing it for resale. Investors are CONSTANTLY crunching the numbers and a quick sale generally only makes sense at this type of discounted valuation.
- Your property must be vacant or you must be willing to do some legwork with tenants
Investors aren’t looking for long closing timelines or tenants in place. Generally the sooner they are the owner of the property, the better. Most want to acquire properties that are vacant so they can quickly add value and either sell the property or fill it with tenants that they vet themselves after attending to any pre-existing issues.
If there are tenants in place and you cannot deliver the property vacant, your buyer is likely going to want you to take care of obtaining estoppel certificates from each tenant in place asserting to facts such as the terms of their lease and what money is being held.
If you or your tenants need to extend the timeline, expect the discount to be closer to the bottom of the range we talked about before. Most of my investors have the ability to close in less than 7-10 days, and if you can’t accommodate them, they’ll move on to the next property on their list.
- Stop worrying about repairs and fixes
Investors want your property AS-IS and their value is that they generally waive inspections and don’t care about issues with the property. This is part of the appeal for many sellers, there’s no fuss, no hassle, no inspection, no re-negotiation, just a quick deal that puts cash in their pocket.
- No – you really can’t negotiate
Real estate investors are constantly looking at properties - they know the market inside and out and don’t have time to waste with the back and forth that a “traditional” real estate transaction might have. The big appeal to this type of offer is that it is clean and easy for all involved. The first offer made is likely the buyers’ best and final, as they have crunched all of their numbers in advance and know exactly where they need to be to make it a worthwhile deal. If you pass on their offer, they likely have 3-5 other properties lined up that would make sense as well and will move on to one of those.
- The investor has all of the leverage
If you want a quick close and cash, the investor knows that they have the leverage. Whether you decide to sell or not, the investor’s appeal is that there is very little risk or hassle on your end – no inspections, no mortgage appraisal or drawn-out process, just cash in your bank account upon closing – and that’s why they’re looking for a discount.
As I mentioned before, I have a number of investment clients that are actively looking for properties to buy cash and close quickly. It’s a bit more complicated than one would think, which is why you needed these basic 5 tips on the mindset of real estate investors. If after reading this article you feel that you might be more interested in selling for fair market value, set up a Seller Strategy Session with me HERE (link) and learn about our proprietary process where we sell our sellers’ homes FAST for TOP DOLLAR.
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Note: This absolutely does not apply to new or updated homes. If your home is in good condition it should ALWAYS